JAKARTA – This year, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) will conduct a stock split with 1:5 ratio after the same corporate action was taken back in 2011. Corporate Secretary of BRI, Hari Siaga Amijarso said the Company plans to do a stock split because BRI’s stock has been increasing within the last few years with CAGR noted at 14.02%. However, the share trading volume shows a decline due to rising share price.
"Through the stock split, the company plans to increase the basis of domestic retail investors. The presence of domestic retail investors is expected could balance and support the program of “menabung saham” and giving a chance to domestic retail investors to hold a blue-chip share,” explained Hari in a release received by KONTAN, Tuesday (17/10).
Previously, BRI along with Indonesia Stock Exchange (IDX) and Indonesian Central Securities Depository (KSEI) have been collaborating to organize the Desa Nabung Saham program so that every layer of the citizen especially in rural area can invest in stock instrument. The share price after the stock split would be aournd Rp 3,000 with a nominal value of Rp 50 per share. With a faction of Rp 10, his side expects that it could attract more domestic retail investor.
"With an affordable share price, the company expects the trade liquidity will increase. The stock split reflects company’s optimism towards the business growth in the future,” he added. (AM/LM)